All Forum Posts by: Raju Balakrishnan

I add provision of tenant paying the co-pay for home warranty, but can deduct on next months pay. This motivation is convenience close than financial or deterrence. If you try to shield yourself from small maintenances, these small issues will add up to having a long list over years. In general, effort of making a call and fixing an appointment etc is hard enough for tenants to make calls for trivial issues, and I would leave it there. 

I do not understand 4. Barrier to entry. You not using too much leverage does not increase the barrier to entry. But if the minimum down payment requirement for asset class is high, that raises barrier to entry. Even if you put 50% but someone else can put 5% down and buy, barrier to entry for the asset class is still low. Can someone explain?

Agree with treating the rental as a business. Get clear with the stringent CA rental laws, knocking on the door may be ok but can be interpreted as an inspection. CA rental laws insists written notice before any inspection. Be aware of that and get clear about other laws too. 

If your target is just cashflow, a passive turnkey (with proper due diligence) out of state is the way to go go get a couple of hundreds in cash flow. If you want to learn while investing, find a property within driving distance and invest. Will be a lot of work, and lot of time with driving, and being in CA hardly any cash flow. But learning will be priceless, with a potential appreciation, and you can scale. But you will have to search hard even to find a cash flow neutral property possible with some TLC. 

@Michael Tucker Welcome!

Compute and compare the returns of house hacking, OOS turnkey, can rest of CA. Decide which will take you close to your goals. It is a numbers game and numbers vary from market to market. You may have to consider the potential appreciation also in CA for prices to make any sense. It is sure riskier, without considering appreciation you will be better off renting than house hacking. 

Great one looking forward to it!

Just to add one point, the returns can be lower in tier 1 low risk markets compared to tier two low growth markets. Checking CBRE will give an idea about market cap rates as it will directly affect cash on cash returns. 

+1 Looking for a real estate attorney in bay area to manage transfer of my assets to LLC. Must have commercial real estate experience also, as I am in the process of getting into multifamily investment. Also if you know an excellent CPA with real estate background let me know.

+1 I would like to connect to multi-family investor here as well.